FCC Rejects Billionaire John Malone's Attempt To Take Control Of Sirius XM

The Federal Communication Commission rejected Liberty Media’s request to take de facto control of Sirius XM Radio.

Liberty Media, owned by billionaire John Malone, has preferred stock that represents approximately 40% of Sirius, but a widening rift between them and current management has stalled the operation. The FCC disclosed the rejection on May 4; the statement noted that Liberty Media failed to correctly file the application for consent to transfer de facto control of Sirius. The problem: Sirius wouldn’t provide Liberty Media “with its passwords, signatures and other information required to file an electronic transfer of control application.” Sirius CEO Mel Karmazin and the management team are trying to ensure “shareholders receive a control premium from Liberty.” Karmazin, who has pocketed more than $37 million in pay since taking the top job at Sirius (and stands to get another $125 million over the next couple of months as he exercises stock options), told my colleague Jeff Bercovici “I’m one of the most underpaid executives in the history of executive payment.”